Assad Corporation repurchases 10,000 of its shares for $12 per share. The shares were originally issued at an average price of $10 per share. How much gain or loss should Assad report on its statement of comprehensive income as a result of this transaction? a.$0 b.$20,000 loss c.$100,000 gain d.$20,000 loss and $100,000 gain

Assad Corporation repurchases 10,000 of its shares for $12 per share. The shares were originally issued at an average price of $10 per share. How much gain or loss should Assad report on its statement of comprehensive income as a result of this transaction? a.$0 b.$20,000 loss c.$100,000 gain d.$20,000 loss and $100,000 gain

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 6MCQ: Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were...

See similar textbooks

Similar questions

How to record the following transactions? 13. (!)Company repurchased from the market 20 of own shares at nominal value of 10 and purchase price of 4. All share were paid for in full cash. 14. Last year company issue 100 shares at a nominal price of $6 / share and issue price $7 / share with an emission expense $150. 15. The company received a return of the goods from client – value of goods 2 000. 16. Last year the company set up a warranty provision of 20 000. One of the clients asked for a repair of the products purchased which cost 2 800. Company used the warranty provision to settle the cost. 17.The company Alfa incurred R&D. Company stated that the research costs are equal 2 000 and second stage (development cost) of the project is not finished but usefulness of it is almost 3 000.18.Company obtained a grant from a government of 2 000 to conduct R&D activities over the next year.The company Alfa incurred R&D. Company stated that the second stage of the project…
3. Vance Refrigeration repurchased 1,000 shares of their own common stock for $20 per share. They then resell 500 shares for $30 per share. How much should APIC be debited or credited for the resale? a. Credit for $10,000 b. Credit for 5,000 c. Debit for 5,000 d. APIC will not be affected by the resale.
Problem 6. The following data were taken from the records of Valencia Frutti Corporation: Share Capital, P50 par, 3,000 shares, Authorized 1,000 shares issued Premium on Share Capital P50,000 3,000 Accumulated Profits (Losses) The Corporation reacquires 100 shares at P55.00 per share, and later sold these share for: a) P55.00 per share (at cost) b) P60.00 per share (above cost) c) P50.00 per share (below cost) Required: 1. Journal Entry to record the acquisition of the treasury shares. 2. Journal entry to record the sale of the treasury shares under the three given cases. 10,000
A corporation using the cost method of accounting for its investment in a 80%–owned investee, which earned $20,000 and paid $5,000 in dividends What is the ending balance of investment on 31/12 if investment in 1/1 amount 100,000$ ? Select one: a. 120,000 b. 100,000 c. 115,000 d. 112,000
Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a trading investment for E13,200. During the year, Sherman paid a cash dividend of £3.25 per share. At year-end, Sherman shares were selling for £34.50 per share. How much total revenues (all revenues) should be recognized from this investment during the year? Select one: Oa. $1900 Ob. $700 OC $1300 Od. $600
Colvis Corporation purchased an available-for-sale investment in 1,100 shares of Home Central shares for $30 per share. On the next balance-sheet date, Home Central shares are quoted at $34 per share As tax rate of 20%. Colvis' should report O A. unrealized gain of $4,400 in other comprehensive income. OB. realized gain of $4,400 in other comprehensive income. OC. unrealized loss of $4,400 in the income statement O D. unrealized gain of $3,520 in other comprehensive income. Click to select your answer.
3 - Profit for the Period 440.000Corporate Tax (96,800)Net Profit for the Period After Taxes 343,200Previous Year Losses (?)I. Order Legal Reserves (22.000)Distributable Net Profit for the Period 286,200 According to the information in the table, how much of the previous year's loss of the joint stock company has been deducted?A) 10,800B) 35,000C) 21,200D) It cannot be calculated.E) 25,000
3.During 20X6, X co. had the following income and expenses: Gross income from operations $1,000,000 Business expenses <400,000> Dividends received from Y co. (32% owned by X co.) 200,000 Capital gains 50,000 Capital loss carry forward <65,000> Net operating loss carry forward 100,000 a. Determine X co.’s dividends received deduction in 20X6? b. Determine X co.’s dividends received deduction in 20X6 assuming that there was no NOL carry forward and X co.’s business expenses were:(i) $1,030,000 or (ii) $1,100,000.
b. Below are excerpts from XYZ corporation's financial statements. Value Particulars Income from continuing operations Income from discontinued operations Extraordinary gains Tax rate Dividend payout rate Calculate: i. Net income ii. Dividends iii. (Retained earnings 500,000,000 10,000,000 5,000,000 30% 45%
An entity provided the following information for the current year:Dividend received 500,000Dividend paid 1,000,000Cash received from customers 9,000,000Cash paid to suppliers and employees 6,000,000Interest received 200,000Interest paid on long-term debt 400,000Proceeds from issuing share capital 1,500,000Proceeds from sale of long-term investments 2,000,000Cash paid for equity investment at FVOCI 800,000Income taxes paid 300,000Proceeds from long-term debt 3,000,000 Write O if the cash flow is under Operating Activities, I if the cash flow is under Investing Activities, and F if the cash flow is under Financing Activities.1. What is the net cash provided by operating activities?2. What is the net cash provided by investing activities?3. What is the net cash provided by financing activities?
The Divirgil Company Net Income is $100. Given the following items: Purchase of debt securities (trading) $7 Amortization of Premium on Bonds Payable $4 Sale of Treasury Stock at cost $5 Increase in Dividends Payable $2 Increase in Retained Earnings $92 Change in Cash for the year is: Select one: $74 b. $84 $77 d. $78 e. $88 a. C.
8. If a corporation reissued at P200 per share 100 shares of treasury stock that it had previously acquired for P280 per share and there wasn't any Share Premium- Treasury, it would debit a. Loss on Sale of Treasury Stock for P8,000. b. Share Premium-Ordinary for P8,000. Retained Earnings for P8,000. d. Treasury Stock for P8,000. а. С. 9. Corpuz, Inc. has issued 200,000 shares of P1 par value ordinary shares at P15. If it repurchases 5,000 shares during 2019 at P20, a. profit would decrease by P25,000. b. profit would decrease by P100,000. c. shareholders' equity would decrease by P25,000. d. shareholders' equity would decrease by P100,000. С. 10. On Sept. 1, 2019, Modesto Corp.; a newly formed corporation, had the following shares issued and outstanding: Ordinary Shares, no par, P10 stated value, 5,000 shares originally issued at P150 per share. Preference Shares, P10 par value, 1,500 shares originally issued at P250 per share. Modesto's Sept. 1, 2019 statement of shareholders' equity…